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I see. Printing money to buy new financial assets would also cause greater wealth inequality and populism, although maybe those are seen as benefits to the curr
by tunesmith 7y ago
I see. Printing money to buy new financial assets would also cause greater wealth inequality and populism, although maybe those are seen as benefits to the current administration.
- deleted 7y ago[deleted]
- opportune 7y agoI could be wrong but I don't think buying US treasuries would directly increase wealth inequality, since the money is being used to fund the US government. If the Fed bought other more private assets off the market (which I believe it does) then yes it could increase wealth inequality
- tunesmith 7y agoPossibly, I may be confused between simply buying treasuries, and quantitative easing. Still learning!
- ethbro 7y agoTo broadly simplify: Buying treasuries = the Fed giving money to the US government Quantitative easing = the Fed giving money to banks In the case of the US, the entire game is also complicated by the fact that the US dollar has insinuated itself into the global economy. Most critically in oil markets. Because of this, there are some things the Fed can do (mostly) without the consequences other countries would face.
- gumbo 7y agoThis would increase wealth inequality because it’s mostly well-off Americans that own financial assets. Look at the wealth inequality increase since 2008. It can mostly be attributed to federal reserve QE policy.